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Entropy, supported by a16z, will shut down and return remaining funds to investors
BlockBeats News, January 26th, According to The Block, Entropy, a decentralized custody startup supported by a16z, has announced that it will shut down and return the remaining funds to investors.
Entropy's founder and CEO, Tux Pacific, stated that after four years of operation, multiple business pivots, and two rounds of layoffs, the company failed to find a business model that fit the venture capital scale. Following initial market feedback indicating that its business model did not scale for venture capital, the decision was made to cease operations.
Entropy reportedly raised a total of approximately $27 million, with a $25 million seed round led by a16z crypto in June 2022. The company was initially positioned as a decentralized alternative to centralized custody providers like Fireblocks and Coinbase, later transitioning to developing a crypto automation platform.
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